The Indian central bank faces increasing pressure to hike interest rates due to spreading domestic price pressures and rising global inflation. MPC minutes and August data indicate a strong likelihood of an early rate increase. However, excess liquidity in the money market could hinder the effectiveness of RBI's monetary policy transmission, requiring bond sales. With global inflation trends increasing, a debate emerges on whether India's 4% inflation target, based on the Balassa-Samuelson effect, needs re-evaluation. The author suggests no hasty changes, but encourages pondering this crucial question to provoke discussion on future macro policy adjustments.